[Ferro-Alloys.com] Realizing the importance of reducing the carbon footprint on the environment, Sabah Oil & Gas Development Corporation Sdn Bhd (SOGDC) signed a land-lease agreement with Esteel Enterprise Sabah Sdn Bhd (Esteel Sabah) for the Green Steel Project.

The signing ceremony took place on Wednesday at the Sabah State Assembly here, witnessed by Chief Minister Datuk Seri Panglima Hajiji Noor.

Representing SOGDC during the signing ceremony was its chairman, Datuk Seri Panglima Abdul Rahman Dahlan, and Managing Director/CEO Datuk Harun Ismail.

Esteel Sabah was represented its managing director Xu Yihang and director Eng Shao Wei.

Also present were Sabah State Secretary Datuk Seri Panglima Haji Safar bin Untong, Assistant Industrial Development Minister Mohd Tamin Zainal and Datuk Thomas Logijin, Permanent Secretary of the Sabah Industrial Development Ministry.

The Green Steel Project was initiated by Esteel to develop the whole green steel industry chain which includes iron ore concentration, palletizing, direct reduced iron (DRI), steelmaking, steel rolling and high-end steel processing.

The plant uses natural gas as a reducing agent instead of coke and coal, which reduces carbon emission by 70 per cent and is low carbon, efficient and environmentally friendly.

In the future, it will gradually transform to green hydrogen smelting with near zero carbon emissions.

(The steel industry is the world’s largest carbon emitter, accounting for about eight percent of the world’s total emissions. There are lots of room for reduction).

Esteel Sabah is now seeking to construct an integrated green steel industry occupying 446 acres of land for phase one of the project inside the Sabah Oil & Gas Industrial Park (SOGIP), an industrial area for downstream oil and gas in the district of Sipitang.

Green Steel is a three-phase project with a total projected investment value of 4.39 billion USD. Phase one will produce 2.5 mtpy hot briquetted iron (HBI) consisting multiple facilities such as an iron ore concentration plant, pelletizing plant, HBI plant, jetty, support facilities, etc.

Phase one of the project commences in quarter four of 2023 and is expected to be completed by quarter four of 2025 with an investment value of 1.29 billion USD.

Phases two and three will have another two sets of DRI, 2.5 mtpy each, and will include steelmaking, steel rolling, high-end steel processing and waste recycling, etc.

The project is expected to generate a huge economic spin-off to the local community through the creation of 10,000–15,000 job opportunities during the construction period and 1,752 during the operation period for phase one alone, boosting another 8,000 in-direct job opportunities.

While the second and third phases will create 5,455 job opportunities during the operation period, boosting 30,000 in-direct job opportunities.

Abdul Rahman told reporters after the ceremony that priority will be given to locals in the job opportunities created by the Green Steel Project.

He said that the construction of phase one of the project would require about 15,000 workers and when completed, the entire plant would need more than 5,000 workers.

“This industry is a very high intensity one which requires high skilled workers. Of course we will prioritize locals,” he said.

Abdul Rahman was responding to the request by Sindumin assemblyman Datuk Dr Yusof Yacob that the company gives priority to locals in Sipitang and its surrounding areas to fill in the vacancies that will be available.

“We want to inform the people in Sipitang of the opportunities available as we do not want them to be bystanders. They should start preparing so that they are ready to grab the opportunities that will be available.

“We hope that early construction works like the earth work will be given to local contractors too, maybe 30 per cent of the work can be given to local contractors. Same with workers for the construction phase, priority should be given to folks in Sipitang and the surrounding areas,” he said.

• [Editor:tianyawei]